SB245 Alabama 2013 Session

Under existing law, an insurance company may enter into an insurance contract to insure a risk and the insurance company may reinsure the risk with another insurance company. The Insurance Department generally requires a company to maintain reserves and regulates when an insurance company entering into a reinsurance contract with another insurer may receive credit against its otherwise required reserves

This bill would make Alabama's law regulating reinsurers and the credit an insurer may apply against its otherwise required reserves substantially similar to the current version of the Credit for Reinsurance Model Law developed by the National Association of Insurance Commissioners

Relating to the Insurance Department; to further provide for the regulation of reinsurance; to add Chapter 5B to Title 27, Code of Alabama 1975; and to repeal Section 27-5-12, Code of Alabama 1975.